As many have pointed out, Macy’s struggles began well before the coronavirus pandemic. In February, the company announced closures of 125 locations over a three-year period.
Since COVID-19 began, the company has had to revise its closure projections which could lead to even more stores being mothballed. In addition, the company cut approximately 3,900 corporate jobs in June following another 2,000 corporate job cuts in February.
Losses aside, Macy’s improved earnings for Q2 signal a possible economic recovery for the company as we reach the end of summer. Although it appears that Macy’s is recovering, analysts argue that the department store giant will exit COVID-19 in a “weakened state,” said Neil Saunders, managing director of research firm GlobalData Retail.
In other words, Macy’s and other big department stores are not out of the woods just yet.
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